Borrowing – Payday Advance USCA http://paydayadvanceusca.com/ Wed, 29 Jun 2022 22:49:36 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://paydayadvanceusca.com/wp-content/uploads/2021/07/icon-4.png Borrowing – Payday Advance USCA http://paydayadvanceusca.com/ 32 32 Budget: Cheema refutes objections and promises to reduce borrowing | Chandigarh News https://paydayadvanceusca.com/budget-cheema-refutes-objections-and-promises-to-reduce-borrowing-chandigarh-news/ Wed, 29 Jun 2022 22:02:00 +0000 https://paydayadvanceusca.com/budget-cheema-refutes-objections-and-promises-to-reduce-borrowing-chandigarh-news/ Chandigarh: Punjab Finance Minister Harpal Singh Cheema on Wednesday refuted opposition objections to the budget while promising his government would take out loans well below the prescribed borrowing limit.Referring to the CCL limit of Rs 31,000 crore from previous governments, he said that between 2007 and 2017, previous schemes failed to pay Rs 12,000 crore […]]]>
Chandigarh: Punjab Finance Minister Harpal Singh Cheema on Wednesday refuted opposition objections to the budget while promising his government would take out loans well below the prescribed borrowing limit.
Referring to the CCL limit of Rs 31,000 crore from previous governments, he said that between 2007 and 2017, previous schemes failed to pay Rs 12,000 crore as principal amount and Rs 19,000 crore was unreturned interest In the center. For the next 20 years, every month an additional Rs 270 crore will have to be paid to the Centre. “It affected the farmers because it was their product. Those who sought the votes of farmers and later stabbed them in the back. Rs 58,000 crore will have to be paid in the coming years,” he said.
SAD MLA Manpreet Singh Ayali said it was the SAD that waived tubewell bills in 1997. However, Cheema said that on the one hand farmers have been given an electricity bill waiver and on the other hand Rs 270 crore will have to be paid by the government for a period of 20 years. Rs 3,240 crore will have to be returned this year. Cheema said Rs 55,000 crore was the borrowing limit but the AAP government will only accept a loan of Rs 35,000 crore this time. After taking over, the AAP government took up the matter with the Center and an interest of 8.25% was paid by the Punjab government, he said. Now it has been reduced to 7.35% and that will mean a benefit of Rs 3,000 crore for the state, he added. We used to talk about per capita income, but when you compare it to other states, Punjab was number one at one time. Telangana’s per capita increase is 10.76%, Haryana has an increase of 7.4%, Himachal an increase of 6.23% but Punjab 5.45%; he is in 11th position. The Congress MPs also claimed that the previous government had never been overdrawn, but in 2017-18 almost 100 days the government was overdrawn, in 2019-20 for 47 days, but not in the last two years .
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Borrow A Boat secures over £3m through crowdfunding https://paydayadvanceusca.com/borrow-a-boat-secures-over-3m-through-crowdfunding/ Tue, 28 Jun 2022 13:11:13 +0000 https://paydayadvanceusca.com/borrow-a-boat-secures-over-3m-through-crowdfunding/ UK: Boat rental and yacht charter marketBorrow A Boat, closed its “most successful” crowdfunding round to date, securing £3,017,030 from 670 investors. The rise on the Seedrs Investment Crowdfunding Platform brings the company’s lifetime crowdfunding total to over £7.8m. The round came within 402% of its original £750,000 target. Founded in 2017, Borrow A Boat […]]]>

UK: Boat rental and yacht charter marketBorrow A Boat, closed its “most successful” crowdfunding round to date, securing £3,017,030 from 670 investors.

The rise on the Seedrs Investment Crowdfunding Platform brings the company’s lifetime crowdfunding total to over £7.8m. The round came within 402% of its original £750,000 target.

Founded in 2017, Borrow A Boat has access to over 45,000 boat rentals and yacht charters in over 65 countries including the UK, Mediterranean, Caribbean, North America and South Asia -East.

The increase follows accelerating growth and revenue in 2022, expansion into several new countries and three acquisitions in the last 12 months of competitors Helm, Barqo and Beds on Board.

Pledging to digitize in a global charter market expected to be worth $30 billion a year by 2027, Borrow A Boat wants to make boating “more accessible, affordable, flexible and inclusive for everyone”, to help stimulate participation and make the chartering process easier and more efficient.

In 2021, after a year in which venture capital investments in the travel industry had fallen by 55%, the company raised £1.5m, enabling its expansion into the United States, Canada , Australia and New Zealand, and facilitated its acquisition of three competitors. on the market.

Borrow A Boat is also currently targeting a “world first” IPO for a boat rental market, which is scheduled for 2023.

Matt Ovenden, Founder and CEO of Borrow A Boat, said: “In 2017, when Borrow A Boat was launched, the yacht charter industry was stagnating. We have always believed that yacht charter should be as easy as booking a hotel, flight or train, so we could see the opportunity that the coming market revolution presented to boat owners. boats and customers.

“Despite launching this round against a backdrop of rising interest rates, inflation and recession risk, we have now successfully completed our largest ever raise, bringing our crowdfunding total to 7.8 million pounds.

“The huge success of this crowdfunding, 402% above target, is a clear recognition of our growth and progress towards our goal of making boating accessible to all. It shows the support of investors to our international market growth plans.

“Going forward, we will continue to innovate and disrupt – true to our mission to make boating more accessible, affordable, flexible and inclusive for everyone, to encourage participation and to simplify renting a boat. , wherever you are in the world,” he said. added.

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Let’s bring the naira back to a respectable value https://paydayadvanceusca.com/lets-bring-the-naira-back-to-a-respectable-value/ Mon, 27 Jun 2022 01:27:35 +0000 https://paydayadvanceusca.com/lets-bring-the-naira-back-to-a-respectable-value/ The Central Bank of Nigeria cannot continue to pretend that all is well with the current value of the naira against internationally acceptable currencies. Present value creates a kind of monetary illusion when it comes to allocating statutory revenues between different levels of government. With the range of experts in its research department, one is […]]]>

The Central Bank of Nigeria cannot continue to pretend that all is well with the current value of the naira against internationally acceptable currencies. Present value creates a kind of monetary illusion when it comes to allocating statutory revenues between different levels of government. With the range of experts in its research department, one is sure that the CBN knows the factors that have pushed the value to the current precarious level. The factors are caused by acts of commission and omission on the part of the Bank itself since some of the factors can be attributed to its activities over the past few years. Two of the factors are the deliberate devaluation of the Bank to artificially increase Federal allocations and the printing of naira for subsequent loans to the Federal Government to meet a simulated shortfall.

Although there have been truths about the shortfall, the revelations of corruption against the country’s former Federation accountant general and the allegation of the same about the acting AGF as well as those who have not yet been published or detected in the revenue registration department of the ministry. of Finance are indicative of the high level of under-recording of federal revenues. This revenue shortfall problem is fundamental to the massive borrowing – internal and external – of the federal government and, by extension, the inability of governments at all levels to meet statutory obligations such as the timely distribution of federal allocations between the three levels of government, the regular payment of wages for workers and contractors, the payment of pension schemes and the adequate financing of social sectors such as education and health.

The CBN’s reliance on printing money to fill the revenue “gap” is a major driver of inflation that is becoming intractable; the high volume of foreign exchange available and perhaps the high demand pressure for foreign currency the end result of which is a massive depreciation of the naira. The country’s budget system is somewhat bizarre. Just before the execution of the current budget, the federal government sent a supplementary budget to the National Assembly for consideration and approval. The supplementary budget element was rejected because it must be introduced during the execution of an approved budget, not at the beginning. In fact, it made it clear that the Department of Finance had not done a thorough job or exercised due diligence when developing the main estimates.

Anyway, the budget already contained huge deficits because the government refused to realize the concept of declining revenues and the need to cut its coat according to the size of the fabric. The continued pursuit of so-called incremental budgeting without adjustment is the force behind current deficit budgeting and colossal borrowing. It is normal to have a deficit budget and to identify the sources of financing the deficit. The sources are naturally internal borrowing, external borrowing or lending, borrowing from the central bank against securities, and the printing of money by the country’s central bank, which is considered the last resort due to its inherent inflationary elements.

Domestic borrowing is a means of mobilizing funds from surplus areas of banks and the non-banking public of the country for the execution of budgets. Borrowing from external sources can come from organized international financial institutions like the African Development Bank or the World Bank or from the international capital market like the euro market. Borrowing from the World Bank or AfDB is usually much cheaper than on the international capital market, but there is some due diligence involved in approving and releasing funds, which is absent in the other window where interest rates are at commercial rates or very high depending on the market. forces of supply and demand.

Additional borrowing in the form of sales of development bonds such as Sukuk bonds is often incorrectly referred to as deficit financing. This is not true as these borrowings are for long term development in specific sectors of an economy, while the deficit financing items are short term one year at a time. The Sukuk bond in Nigeria, for example, has been dedicated to infrastructure development that can span five years or more. But borrowing from the central bank to fund a year’s budget has become a common occurrence under the current government. It should come as no surprise, then, that inflation has become intractable and the depreciation/devaluation of the naira, one of the by-products of such acts, has become inflexible.

In addition to the CBN’s direct financing of the deficit budget, it also intervenes in certain sectors of the economy through monetary transfers. This liquidity adds to the volume of liquidity in the economy, which invariably serves as a catalyst for inflation and the depreciation of the naira. The Economic Intelligence Unit of the World Bank, in a publication, explained that as central banks put in place policies to contain inflation, the CBN is inadvertently promoting inflation through the unchecked direct financing of deficits. public. The report states that “the CBN continued to print more money for the Federal Government, whose overdraft facility with the CBN reached N19tn ($46 billion) in April 2022 from N17.4tn at the end of 2021.” With this level of lending, the CBN violated the rules governing the limit of the Bank’s overdraft facilities to the government.

In addition, “the CBN also runs a range of direct lending programs for the agriculture, manufacturing and energy sectors, currently totaling around 3.6 billion naira ($9 billion). CBN’s action in direct project finance is unusual and the first of its kind in the world This is because a central bank is not equipped to engage in retail banking, especially more that we have specialized banks, like the Bank of Industry and the Bank of Agriculture, which were created to finance specific sectors of the economy and the funds should have been submitted to them for implementation at name of the CBN. But we have to understand that was how CBN Governor Godwin Emefiele could sell himself to the electorate, given his truncated ambition to become President of Nigeria. That is what we can call the economy of self-interest, which violates the public interest.

Is the CBN concerned about the deteriorating value of the naira? It seems so, except that the Bank was looking for a candidate to hold accountable instead of looking for itself in terms of policy formulation and implementation. An otherwise innocuous bureau de change fell victim to the mismanagement of the CBN. The CBN should now be firm in refusing direct financing of budget deficits and let the government know what the exercise is causing from the domestic value of the naira, the high cost of domestic production and the consequent lack of competitiveness of our domestic products by compared to foreign products. This is a way to bolster the value of the naira or the CBN Governor will be seen as the one who took the naira/dollar ratio from N1-180 to N600 at $1! Ha!

The Ministry of Finance, Budget and Planning will need to begin adjusting its spending to reduce deficits and take control of federal revenues by monitoring inflows and outflows through the use of technology. Macroeconomic policy should focus on growing domestic production at low cost to make selling prices affordable and encourage the purchase of domestic products for consumption, thereby promoting employment and increasing the number of people who will pay taxes. to fund budgets.

This is the time when the country should benefit from high oil prices, but there have been reports of underproduction of crude oil for export in the oil sector. If this is true, and not that some are playing with the revenues of this sector, it is time for the Minister of State for Oil, Timipre Sylva, to roll up his sleeves and go to the field to fix things so that we can sell more , build up the external reserve and be able to cover the cost of importing refined petroleum products while working to eliminate shameful imports. Agriculture Minister Mohammad Mahmood Abubakar also has his work cut out for wheat production. We are told that Nigeria is the leading exporter of cassava, but bakers claimed that the lack of cassava made it difficult to reduce the amount of wheat needed to make bread. Thus, the so-called cassava bread remains an experiment. Finally, I call on politicians not to bribe with dollars in the general election, this will further destroy our currency. We have to start getting it right.

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13% of 401(k) Participants Borrowed Against Their Plans in 2021 — Here’s Why It’s a Dangerous Decision https://paydayadvanceusca.com/13-of-401k-participants-borrowed-against-their-plans-in-2021-heres-why-its-a-dangerous-decision/ Sat, 25 Jun 2022 09:36:00 +0000 https://paydayadvanceusca.com/13-of-401k-participants-borrowed-against-their-plans-in-2021-heres-why-its-a-dangerous-decision/ OWhen you need money, you have a choice. You can go out and apply for a loan or try to leverage the assets you already own. For homeowners, this may mean taking out a home equity loan or a line of credit. For retirement savers, this may mean taking out a loan against a 401(k) […]]]>

OWhen you need money, you have a choice. You can go out and apply for a loan or try to leverage the assets you already own. For homeowners, this may mean taking out a home equity loan or a line of credit. For retirement savers, this may mean taking out a loan against a 401(k) plan.

In 2021, 13% of 401(k) plan participants had an outstanding loan, reports Avant-garde. And the average loan amount was around $10,600. While borrowing against your 401(k) may seem like a reasonable decision, it’s one that could easily backfire.

The Dangers of 401(k) Loans

It’s easy to see why 401(k) plan participants are drawn to borrowing from their accounts. When you repay this loan, you are repaying yourself, as opposed to a bank or lending institution. But 401(k) loans can be dangerous, so it’s a good idea to explore other options before deciding on one.

Image source: Getty Images.

For one, the penalties for not repaying a 401(k) loan on time are substantial. In a nutshell, if you don’t repay this loan according to the schedule you are required to commit to, your loan will be treated as an early withdrawal from your retirement plan. At this point, he will be subject to a 10% early withdrawal penalty.

If you borrow from a Roth 401(k), that withdrawal will not be taxable. But if you borrow against a traditional 401(k), you’ll pay taxes on that withdrawal in addition to the penalty.

Plus, while you typically have five years to pay off a 401(k) loan, if you stop working for the company sponsoring your plan, you’ll have to pay back what you owe much sooner, usually within 90 days. . This is true whether you change companies or are fired through no fault of your own.

Finally, if you are unable to repay your 401(k) loan, in addition to the penalty and taxes mentioned above, you may find yourself short of Pension saving. Suppose you take out a $30,000 loan on your 401(k) and don’t pay it back. That’s $30,000 less – at a minimum – that you won’t have when your career is over. In reality, you’ll probably be much shorter if you factor in the loss of investment growth on that amount.

Say you take out that $30,000 loan 20 years before you retire. If your 401(k) generates an average annual return of 8% (which is a few percentage points lower than the stock market average), the missing $30,000 will actually equal about $140,000 in lost retirement funds. when you recognize the return you are not get all those years.

Be careful when borrowing from your 401(k)

It’s easy to understand the appeal of a 401(k) loan. But before going that route, it might be worth exploring other options. You may be able to borrow against your home or qualify for a personal loan if you have good credit. And both of these options may be a safer bet in the long run.

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Germany triggers ‘alarm’ phase of emergency gas plan as Putin cuts supplies https://paydayadvanceusca.com/germany-triggers-alarm-phase-of-emergency-gas-plan-as-putin-cuts-supplies/ Thu, 23 Jun 2022 13:53:18 +0000 https://paydayadvanceusca.com/germany-triggers-alarm-phase-of-emergency-gas-plan-as-putin-cuts-supplies/ ghello. The government borrowed more than expected in May, underscoring the risks to public finances as the cost of living crisis threatens to tip Britain into recession. Rishi Sunak borrowed an additional £14bn last month, £2bn more than economists forecast. Debt interest payments hit £7.6billion – the highest on record in May, according to the […]]]>

ghello.

The government borrowed more than expected in May, underscoring the risks to public finances as the cost of living crisis threatens to tip Britain into recession.

Rishi Sunak borrowed an additional £14bn last month, £2bn more than economists forecast.

Debt interest payments hit £7.6billion – the highest on record in May, according to the ONS.

The spike in debt servicing costs reflects a jump in the retail price index measure of inflation, which hit 11.7% last month.

5 things to start your day

1) Brussels “keeps the city on a higher level than communist China” ‘Weird and wrong’ to deny Square Mile businesses access to the single market

2) Britain’s car battery champ seeks to woo Elon Musk’s Tesla Plus: charging electric cars to cope with 10-minute delays amid energy rationing

3) Unilever secretly fought ban on plastic bags which it called ‘evil’ The company has privately lobbied against countries’ efforts to get rid of soap wrappers – despite the promise of pollution

4) Crypto giant Tether targets UK investors with sterling ‘stablecoin’ Sterling Product Launch Should Make It Easier For UK Merchants To Access Cryptocurrencies

5) Sir Jim Ratcliffe to bring gas to Europe as bloc rushes for supplies Chemical giant Ineos will import up to 1.4 million tonnes of gas per year

What happened overnight

Hong Kong shares started with a gain this morning, after heavy losses the day before. The Hang Seng index climbed 0.7pc.

The Shanghai Composite Index rose 0.06pc, while the Shenzhen Composite Index on China’s second-largest stock exchange added 0.2pc.

Shares in Tokyo opened higher, with the benchmark Nikkei 225 rising 0.2pc.

coming today

  • Company : Naked Wines (annual results); Serco (commercial statement)
  • Economy: Service performance index (UK, US, EU)Manufacturing PMI (UK, US, EU)Compound PMI (US, EU)GfK Consumer Trust (UK)economic bulletin (EU)unemployment benefit claims (WE)bank stress test information (WE)
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Caroline Stanbury slams Kyle Richards for claiming she borrowed his jacket and never returned it https://paydayadvanceusca.com/caroline-stanbury-slams-kyle-richards-for-claiming-she-borrowed-his-jacket-and-never-returned-it/ Tue, 21 Jun 2022 18:48:48 +0000 https://paydayadvanceusca.com/caroline-stanbury-slams-kyle-richards-for-claiming-she-borrowed-his-jacket-and-never-returned-it/ what is it with Kyle Richards claim that people aren’t paying or giving things back? During the The Real Housewives of Beverly Hills season 10 reunion she went after the newbie Garcelle Beauvais. She accused Garcelle of failing to make a charitable donation she had promised. A shocked Garcelle wanted to know why she hadn’t […]]]>

what is it with Kyle Richards claim that people aren’t paying or giving things back? During the The Real Housewives of Beverly Hills season 10 reunion she went after the newbie Garcelle Beauvais. She accused Garcelle of failing to make a charitable donation she had promised. A shocked Garcelle wanted to know why she hadn’t just informed her. It seems Kyle wanted to embarrass Garcelle instead of just calling her out. Now Kyle is doing it again, but taking him overseas.

As reported by page 6, Caroline Stanbury was forced to defend herself over a borrowed jacket. The Real Housewives of Dubai The star took to Twitter to set the record straight. Caroline tweeted a screenshot of a DM Kyle shipped. In the DM, Kyle admitted she twisted a story that Caroline didn’t return her jacket Watch what’s happening live. Caroline tweeted: “hmmmm @KyleRichards please clarify I had to borrow your jacket as my dress was see through I told you I love it you said it’s in your store that I bought it.”

In the DM, Kyle tried to cover her a– by giving carolina a warning. Kyle wrote: “Hi just wanted to give you a heads up last night I was asked about you and the Dubai show and said something about you borrowing my jacket and that you didn’t want to return it (because you loved it so much) but I know you returned it and ended up buying one She concluded, “Anyway, the show goes so fast never have time to explain everything. Good luck with the show!

Although the full DM screenshot was not posted, carolina answered him. And she was not amused. Caroline, “yes I was tagged a lot about it and yes I bought it in your store.” She included an eye rolling emoji for emphasis.

Now on what Kyle actually said on WWHL. Host Andy Cohen began his shadow by asking Kyle about carolina. He began, “Caroline Stanbury had issues with some of the women.” He went on to ask, “We want to know if you’re okay with Nina [Ali]it is first impression of her. Do you find Caroline Stanbury distant? You’ve been on Bravo for many years. Did you have an altercation with her? Do you know her?”

Kyle replied that his “only encounter” with carolina that’s when she lent him the jacket she was wearing. Then claimed, “I didn’t get it back from her.” After all these years of RHOBH and how many appearances on WWHL, you’d think Kyle would be better informed. The clip was unedited and Kyle never clarified his statement. Now she’s clearly on Caroline’s bad side, which is understandable. I’d be mad too if anyone suggested I steal his jacket.

carolina has since deleted his original tweet showing their private conversation. But she tweeted a new one, with the same caption but a different image. The photo she featured was from a Bravo article with the headline, “Kyle Richards Has an interesting kind about the first time she met Caroline Stanbury. Under the teased title, “The RHOBH the actor said he was still missing a jacket after a run with the RHODubai cast member.” Kyle has yet to respond to Caroline’s tweet.

TELL US – WHY DO YOU THINK KYLE DIDN’T GIVE THE FULL STORY? ARE YOU ON TEAM KYLE OR TEAM CAROLINE?

[Photo Credit: Bravo]

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Donohoe wants a balance between spending and borrowing https://paydayadvanceusca.com/donohoe-wants-a-balance-between-spending-and-borrowing/ Mon, 20 Jun 2022 10:08:55 +0000 https://paydayadvanceusca.com/donohoe-wants-a-balance-between-spending-and-borrowing/ Finance Minister Paschal Donohoe said there was only one pot of money, taxes, to pay for everything and that ultimately there had to be a balance between spending and country’s level of borrowing. He said the 2.5% offer in public sector wage negotiations was part of that balance. Mr Donohoe said he and Public Expenditure […]]]>

Finance Minister Paschal Donohoe said there was only one pot of money, taxes, to pay for everything and that ultimately there had to be a balance between spending and country’s level of borrowing.

He said the 2.5% offer in public sector wage negotiations was part of that balance.

Mr Donohoe said he and Public Expenditure Minister Michael McGrath had to strike the right balance between meeting the cost of living challenges facing public servants, but also giving the government the ability to meet any other undue demands. salaries that will be faced in 2023.

Speaking on RTÉ’s Today with Claire Byrne, he said the government ‘stands ready to engage with our union representatives at any time in the coming days through the Workplace Relations Commission’.

However, he said public sector workers are being affected by the rising cost of living like most other people in the country.

“The challenges faced by our public servants are also faced by those working in the private sector,” Donohoe said.

“They also face those, for example, who may be dependent on state pension and may not work at all, and all other parts and levels of our society in our economy,” he said. declared.

“We also have a duty to them to be able to meet the needs they will have as we deal with the shock of a war that is affecting Ireland and the rest of the world. And that is the balance that Minister McGrath and I strive to be fair at all times,” he added.

He said he hopes to be able to reach an agreement in the Workplace Relations Committee “if a compromise can be found”.

The finance minister also said that while he is focused on delivering a budget in October that can make a difference to the cost of living, there are also limits to what he can do.

Paschal Donohoe said he was now only focusing on budget preparation.

The minister said he aims to deliver a budget in October that can make a difference to the cost of living and recognizes the pressures and challenges many face.

He said he fully appreciates the challenges that many people are currently facing, such as “the rising cost of living, the rising cost of fuel and even food” and that the money is being spent now on ease the financial burden on people.

“Since the start of the year, we have spent 1.4 billion euros on top of the measures we announced last October to reduce VAT, reduce excise duties, make additional payments available for those who are at risk of energy poverty, then the €200 energy credit,” he said.

“We are spending this money now, to help now,” he said.

Minister Donohoe said he was well aware of the calls for the introduction of targeted measures.

“But that is why we have introduced measures such as additional payments through the Department of Social Welfare to help those at risk of fuel poverty,” he added.

He called the current challenge “broad” and said some of the measures should also be broad.

“When we’re faced with a challenge as broad as we are with the change in inflation, it’s appropriate that some of the measures we bring in are also broad. If you look at the root cause of that, which for now is energy price impact of Putin’s war on Ukraine, the best and most effective way to address it is to change the energy tax,” he said.

Minister Donohoe said the measures which have been introduced from an excise perspective ‘are the largest of their kind we have done in Ireland’s recent economic history and are a multiple of what is being done to our nearest neighbour, the United Kingdom”. .

He said he had no plans to introduce more measures by next October.

“I don’t foresee any other measures between now and the writing of the budget. The Summer Economic Statement will be a measure that will indicate what economic resources our country has and what I believe to be the right fiscal strategy,” he said. he declared. says RTE.

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Budget borrowing almost doubles – Journal https://paydayadvanceusca.com/budget-borrowing-almost-doubles-journal/ Sun, 19 Jun 2022 02:14:18 +0000 https://paydayadvanceusca.com/budget-borrowing-almost-doubles-journal/ KARACHI: Despite a massive increase in revenue collection, government budget borrowing increased by more than 186% in the first 11 months of the outgoing fiscal year. The latest data released by the State Bank of Pakistan showed that federal government budgetary borrowing soared to 2,488.5 billion rupees during 11MFY22 from 868.4 billion rupees in the […]]]>

KARACHI: Despite a massive increase in revenue collection, government budget borrowing increased by more than 186% in the first 11 months of the outgoing fiscal year.

The latest data released by the State Bank of Pakistan showed that federal government budgetary borrowing soared to 2,488.5 billion rupees during 11MFY22 from 868.4 billion rupees in the same period of the year last.

Tax collection by the Federal Board of Revenue (FBR) also increased to Rs 5.349 trillion in 11MFY22. Compared to Rs4.164tr in the corresponding period of 2020-21, a growth of 28.5% in the July-May period. However, collection fell short of the planned target of Rs 18 billion.

According to an official report in the first 10 months, FBR exceeded its revenue target by 5.2%. Despite massive tax breaks, including a zero sales tax on oil and some other essentials, tax authorities have managed to collect higher revenue.

Further details showed that the government borrowed a lower amount of Rs 2,231.9 billion from banks during 11MFY22 for fiscal support compared to Rs 2,577 billion in the same period last year.

However, despite a 28.5% higher revenue collection which generated an additional Rs 1.185 billion during 11MFY22, expenditure was even higher which forced the government to borrow an additional Rs. 1.62 trillion for budget support over the period.

In FY22 July to March, the budget deficit was recorded at 3.8% of GDP (2,565.6 billion rupees) compared to 3% (1,652 billion rupees) in the comparable period from last year. Similarly, the primary balance posted a deficit of Rs 447.2 billion against a surplus of Rs 451.8 billion during the period under review.

However, the budget deficit for the whole of FY22 was estimated at 8.6%. Finance Minister Miftah Ismail in his budget speech said the government would target a budget deficit of 4.9% of GDP for 2022-23.

He further said that the government will prevent tax evasion which will help raise revenue by 20% to Rs7tr in 2022/23 and reduce the budget deficit.

A report from the Ministry of Finance indicated that an increase in the deficit was observed due to the increase in expenditure due to the increase in grants and donations.

Posted in Dawn, June 19, 2022

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ACT Wazalendo advises government to reduce commercial borrowing https://paydayadvanceusca.com/act-wazalendo-advises-government-to-reduce-commercial-borrowing/ Fri, 17 Jun 2022 09:59:36 +0000 https://paydayadvanceusca.com/act-wazalendo-advises-government-to-reduce-commercial-borrowing/ By George Helahela Dar es Salaam. Reducing commercial borrowing, reviving the cashew development fund and scrapping the mobile transaction tax are some of the recommendations of the ACT Wazalendo party which released its analysis of the national budget for 2022/23 yesterday. . ACT Wazalendo financial sector spokesman Emanuel Mvula urged the state to reduce commercial […]]]>

By George Helahela

Dar es Salaam. Reducing commercial borrowing, reviving the cashew development fund and scrapping the mobile transaction tax are some of the recommendations of the ACT Wazalendo party which released its analysis of the national budget for 2022/23 yesterday. .

ACT Wazalendo financial sector spokesman Emanuel Mvula urged the state to reduce commercial borrowing as part of measures to contain spiraling national debt.

“Commercial loans represent 32.8% of total external debt. We want the government to reduce the ratio of commercial loans to national debt to 20%. The government should also consider converting these loans into concessional loans,” he said.

According to Finance and Planning Minister Mwigulu Nchemba, who presented the budget to Parliament on Tuesday, the public debt was 69.44 trillion shillings in April this year, an increase of 14.4%.

Mr Mvula urged the government to restore 100% cashew export tax for farmers as it was before the government amended the law in 2018.

“The government has proposed that 50% of the export tax should go to the central government’s consolidated fund and another 50% to finance farmers’ inputs. But we strongly oppose this proposal because it will not help farmers,” he said.

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Mvula also advised the government to scrap taxes on mobile money transactions introduced last year, citing the tax measure as a burden on ordinary citizens and failing to meet government expectations.

“ACT Wazalendo wants the government to remove these levies on mobile money transactions. The government has collected 261 billion shillings of the 1 trillion shillings earmarked for mobile money transactions, which is only 25% of the target,” he said.

Mvula also lamented the low budget allocated to development spending, which “also focused on making things easier rather than developing people.”

“The level of the development budget that is going to serve the people is only 6.2 trillion shillings which is equivalent to 14.9% of the total budget. So our budget is still very much about things and about paying down debts rather than boosting citizen development,” he said.

Party leader Zitto Kabwe has stressed the need for the Minister of Finance and Planning to explain the controversy over the tax that is planned to be imposed on any citizen over the age of 18.

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European Central Bank rallies after rising borrowing costs | Economic news https://paydayadvanceusca.com/european-central-bank-rallies-after-rising-borrowing-costs-economic-news/ Wed, 15 Jun 2022 09:36:00 +0000 https://paydayadvanceusca.com/european-central-bank-rallies-after-rising-borrowing-costs-economic-news/ The European Central Bank’s rate-setting board will hold an unscheduled meeting on Wednesday ‘to discuss market conditions’ as borrowing costs in several countries rose after the bank announced it would raise interest rates . The bank last week announced the July and September hikes without specifying how it would protect countries sharing the euro if […]]]>

The European Central Bank’s rate-setting board will hold an unscheduled meeting on Wednesday ‘to discuss market conditions’ as borrowing costs in several countries rose after the bank announced it would raise interest rates .

The bank last week announced the July and September hikes without specifying how it would protect countries sharing the euro if borrowing costs rose excessively – as they did during the European debt crisis. in 2010-2012. This is a potential concern for heavily indebted governments, notably Italy.

Spreads between Italian and Spanish debt versus safe German government debt – a key fear indicator for the 19-nation eurozone – widened after the ECB made only nonspecific promises to prevent “ financial fragmentation” or interest rates in individual countries that are so high that they do not reflect the bank’s benchmarks.

The ECB has a safety net in the bond market in which it could intervene and buy the debt of a country in difficulty. The tool helped ease the debt crisis a decade ago after the bank announced it following a promise by then-president Mario Draghi to do “whatever it takes to prevent the euro zone from breaking up. But this programme, which should never have been used, may come with difficult conditions for reform and governments may be reluctant to turn to it.

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Holger Schmieding, chief economist at Berenberg Bank, said “the current situation is different from the euro crisis of just over a decade ago” because countries have improved their growth prospects and that the ECB has bond market support in its back pocket if needed.

Current conditions “should not present an imminent risk, even for fiscally-struggling Italy”, he said.

Interest rates on 10-year Italian government bonds rose from around 1.2% at the start of the year to 4.1% on Wednesday. The ECB’s pandemic support programs, including 1.7 trillion euros ($1.8 trillion) in bond purchases, have helped keep government borrowing costs low in the zone euro. This program ended in March, however, and markets are now eyeing interest rate increases from historically low levels.

The surprise ECB meeting comes on the same day the US Federal Reserve is expected to announce its biggest interest rate hike since 1994. The European bank has followed the Fed and other central banks in raising rates to fight against decades-high levels of inflation, including the Bank of England, which has hiked rates four times since December and will meet again on Thursday.

But now the ECB has scheduled rate hikes for July and September and indicated that the September increase could be half a percentage point higher than usual.

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